NEW YORK - Clearwater Analytics Holdings, Inc. (NYSE: CWAN), a global SaaS investment management firm, has initiated a secondary public offering of 12 million shares of Class A common stock. The offering is a resale by affiliates of Warburg Pincus LLC and Permira Advisers LLC, with no proceeds going to Clearwater Analytics itself. Citigroup is the sole book-running manager for the offering.
The shares are available through a shelf registration statement filed on March 8, 2023, and are listed on the New York Stock Exchange under the ticker "CWAN." The terms of the offering will be detailed in a prospectus, which can be obtained from Citigroup or by accessing the SEC's website.
Clearwater Analytics is known for its automated SaaS solutions that assist in the entire investment lifecycle. The company's platform is utilized by insurers, asset managers, corporations, and governments, managing over $7.3 trillion in assets.
As per the press release, the offering is made in accordance with the registration requirements of the Securities Act of 1933, as amended. It also noted that this announcement does not constitute an offer to sell or a solicitation of an offer to buy securities in any jurisdiction where it would be unlawful without proper registration or qualification under the securities laws of such jurisdiction.
The company's forward-looking statements indicate plans for future operations, business strategies, and investment plans, among other aspects. However, these statements are subject to risks and uncertainties that could cause actual results to differ materially.
Investors are cautioned not to place undue reliance on these forward-looking statements, which reflect the management's views only as of today. The company expressly disclaims any obligation to update these statements in the future.
This article is based on a press release statement and aims to present the facts of the secondary offering without any endorsement of the claims.
In other recent news, Clearwater Analytics showcased robust growth in its Q1 2024 results, with a 21% rise in revenue to $102.7 million and a 42.9% surge in EBITDA to $32.2 million. The company attributes this growth to low churn rates, high net promoter scores, and the successful onboarding of new clients. Clearwater Analytics has also expanded its capabilities through the acquisition of Wilshire Advisors' risk performance and analytics platforms.
Recent developments include a record high gross margin of 78% and a net revenue retention rate of 110%. Clearwater Analytics has surpassed its revenue and EBITDA guidance for the quarter and has increased its full-year revenue and EBITDA guidance for 2024. The company added six significant clients to its Clearwater JUMP platform and expects upselling momentum to increase in the second half of the year.
Despite concerns about Q2 guidance due to the early go-live of a large client in Q1 impacting Q2 revenue, Clearwater Analytics remains committed to its long-term EBITDA margin goal of 40%. The company's strategic acquisitions and high client retention rates are expected to continue driving momentum.
InvestingPro Insights
As Clearwater Analytics Holdings, Inc. (NYSE: CWAN) embarks on its secondary public offering, potential investors may find the latest data and insights from InvestingPro invaluable for making informed decisions. With a current market capitalization of $4.39 billion and a striking revenue growth of 21.76% over the last twelve months as of Q1 2024, the company's financial health appears robust. This growth is further reflected in the company's gross profit margin, which stands at an impressive 71.4% for the same period.
InvestingPro Tips highlight that Clearwater Analytics operates with a moderate level of debt and has liquid assets that exceed its short-term obligations, which could be reassuring for investors concerned about the company's financial stability. Moreover, while the company has not been profitable over the last twelve months, analysts predict profitability this year, indicating potential for future growth. Investors should note that the stock is currently trading at a high Price / Book multiple of 13.7, which suggests a premium valuation.
For those looking to delve deeper into the analytics, InvestingPro offers more tips that could provide a broader understanding of Clearwater Analytics' investment potential. By using the exclusive coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to an extended range of professional insights. There are 14 additional InvestingPro Tips available for CWAN, which could further inform investment strategies.
Investors considering participating in the secondary offering may also be interested in the recent price performance of CWAN shares. The stock has shown a strong return over the last three months, with an 18.78% total price return, and is trading close to its 52-week high at 91.87% of the peak price. The next earnings date is scheduled for July 31, 2024, which will be a critical time for investors to assess the company's financial trajectory and the impact of the secondary offering on its stock performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.